European Parliament resolution on trade relations between the EU and China and market economy status(2016/2667(RSP))

B8-0609/2016

The European Parliament,

– having regard to the EU’s anti-dumping legislation (Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against dumped imports from countries not members of the European Community(1)),

– having regard to China’s Accession Protocol to the World Trade Organisation (WTO),

– having regard to its previous resolutions on EU-China trade relations,

– having regard to Rule 123(2) of its Rules of Procedure,

A. whereas the European Union and China are two of the biggest traders in the world, with China being the EU’s second-biggest trading partner and the EU being China’s biggest, and with daily trade flows of well over EUR 1 billion between them;

B. whereas any decision on how to deal with imports from China after December 2016 should ensure the compliance of EU law with WTO norms;

C. whereas, when China joined the WTO, an arrangement for its accession allowed for a specific methodology for the calculation of dumping, which was introduced in Section 15 of China’s Accession Protocol and serves as a basis for a different treatment for Chinese imports;

D. whereas the remainder of Section 15 of China’s Accession Protocol to the WTO constitutes WTO recognition that special rules can be applied to China in anti-dumping investigations and provides a legal basis for the application of a non-standard methodology to imports from China after 2016;

E. whereas, given the current level of influence of the state on the Chinese economy, firms’ decisions involving prices, costs, outputs and inputs do not respond to market signals reflecting supply and demand;

F. whereas, in its Accession Protocol, China has committed, inter alia, to allowing all its prices to be determined by market forces, and whereas the EU must ensure that China complies fully with its WTO obligations;

G. whereas China’s overcapacity is already having strong social, economic and environmental consequences in the EU, as demonstrated by its recent detrimental impact on the EU steel sector, in particular in the United Kingdom, and whereas the social impact on EU jobs of granting market economy status (MES) to China could be substantial;

H. whereas the recently concluded public consultation on the possible granting of MES to China could provide additional information which may be useful in addressing the issue;

I. whereas the Commission communication of 10 October 2012 entitled ‘A stronger European industry for growth and economic recovery’ sets the objective of raising industry’s share of EU GDP to 20 % by 2020;

1. Reiterates the importance of the EU strategic partnership with China, in which free and fair trade and investment play an important role;

2. Stresses that China is not a market economy and that the five criteria established by the EU to define market economies have not yet been fulfilled;

3. Urges the Commission to coordinate with its major trading partners, including in the context of the upcoming G7 summit, on how best to ensure that all provisions of Section 15 of China’s Accession Protocol to the WTO other than subparagraph 15(a)(ii) are given full legal meaning under the relevant domestic laws and to oppose any unilateral granting of MES to China;

4. Calls on the Commission to take due account of the concerns expressed by EU industry and trade unions and different stakeholders about the consequences for EU jobs and sustainable economic growth in all the manufacturing sectors affected and for EU industry as a whole, and to ensure the EU’s competiveness in a global context;

5. Is convinced that, as long as China does not meet all five EU criteria required to qualify as a market economy, the EU should use a non-standard methodology in anti-dumping and anti-subsidy investigations into Chinese imports in determining price comparability, in accordance with and giving full effect to those parts of Section 15 of China’s Accession Protocol which do not expire in December 2016;

6. Calls on the Commission to strengthen the effectiveness of its anti-dumping instrument in order to guarantee a level playing field for EU industry with China in full compliance with WTO rules;

7. Instructs its President to forward this resolution to the Council, the Commission and the governments and parliaments of the Member States.